I first noticed it in early January…
Reports were coming out of Wuhan, China, that a mystery disease with pneumonia-like symptoms was spreading throughout the city.
At first, only a handful of cases were reported. But it didn’t stay that way for long. The number of confirmed cases began to grow exponentially.
I knew then that this mystery virus – what we now know as COVID-19 – could be serious. I was right. As of this writing, there are more than a million confirmed cases.
I clearly remembered the outbreak of SARS in Hong Kong back in 2003. Why? Because I was actually there.
I was living in Tokyo, working as a technology executive. At the time, I was doing a lot of business in Hong Kong. I was typically there once a month.
During one trip to Hong Kong, the airport, the Airport Express train, the taxi lines, and even the streets were desolate for such a bustling city.
Arriving at my hotel, I found an empty lobby. The atrium area for afternoon tea, which is normally packed, held just a few people.
I realized then how serious SARS was. I stayed one night and returned to Tokyo the next morning without ever leaving the hotel. I’m glad I did. More than 700 people died from the SARS outbreak.
So I know from personal experience the impact a pandemic like SARS or COVID-19 can have on an economy and financial markets.
I won’t sugar-coat it. For us, as investors, things may look pretty bleak right now. As of this writing, the S&P 500 is about 25% off its high.
With that in mind, what I’m about to say to you next may come as a shock.
Now is the perfect time to be buying stocks.
An Unprecedented Opportunity
First, let me start by saying that things are going to get better. We’re already seeing the future when we look to China. The number of new cases is shrinking.
On March 19, China reported that no new cases had been identified. And a study published in the journal Nature Medicine found that the actual mortality rate in Wuhan was around 1.4%. Remember, much of the mainstream media was claiming that the mortality rate was closer to 3%.
In China, factories are coming back online. Apple reopened all its China-based stores. Business is getting back on track.
The same thing will happen in the U.S. and around the world.
And with the warmer temperature and higher humidity in the summer months, the virus becomes far less transmissible.
The stock market will improve. By this time next year, I believe the panic around COVID-19 will be in the rearview mirror.
I know buying stocks after this volatility can be unnerving. We’ve only seen this level of fear-driven selling a handful of times in recent history. I’m talking about events like Black Monday, the dot-com bust, and the 2008–2009 financial crisis.
But do you know what all those events had in common? They were all excellent times to deploy capital in quality investments.
This time will be no different. Too many good companies are trading too cheaply.
And there is one area that investors need to pay attention to. I’m talking about the 5G megatrend that is playing out right now.
Nothing can stop 5G, not even COVID-19. Here’s why…
5G Is Inevitable
You’ve likely heard of 5G. It’s the next generation of wireless technology. And 5G will be, on average, 100 times faster than the 4G networks we use today.
And 5G will also usher in a suite of new technologies like self-driving cars, holographic telepresence, and robotic surgery. All told, 5G is expected to create more than $12 trillion in wealth.
But here’s what few understand about 5G…
5G networks are not a “nice to have” technology. It is a piece of critical infrastructure on par with bridges, tunnels, and roads.
5G is coming. Nothing can stop it, not even COVID-19. And we’re already seeing this play out…
Last month, the Federal Communications Commission (FCC) completed the largest wireless spectrum auction in history. Combined, wireless operators spent over $7 billion acquiring high-band radio frequency (RF) spectrum for their 5G wireless networks.
This spectrum is used for transmitting and receiving voice, video, and data over wireless networks. The millimeter-wave spectrum that the FCC auctioned will be used to enable lightning-fast 5G speeds of more than 1 gigabit per second.
And the network providers are moving full speed ahead. They are spending billions of dollars to build America’s 5G infrastructure. The carriers are moving with more urgency than ever before. Countries that do not migrate to 5G wireless technology will be left at a competitive disadvantage.
And this may come as a surprise…
Demand for wireless bandwidth is higher than it has ever been.
Think about it. Instead of going out, many people are having FaceTime chats, streaming movies, playing games, and pursuing other means of online entertainment. All these activities require more bandwidth.
And 5G-enabled devices are not far behind.
Back in March, Foxconn – the company that will manufacture Apple’s 5G-enabled iPhone – announced that business is quickly getting back on track. The founder, Terry Grou, said that progress toward restoring operations has “exceeded our expectations and imagination.”
So let me reiterate one more time: 5G is unstoppable. No virus can stop it.
Better yet, because of the recent market volatility, some of the best 5G companies are trading for a bargain.
Twelve months from now, when 5G stocks are soaring hundreds or even thousands of percent, most investors will be kicking themselves for not investing when they had the chance.
That’s why I’m hosting a free 5G investing summit on April 8 at 8 p.m. ET. I’m calling it The State of 5G.
I’ll tell you which 5G stocks you’ll want to buy for potentially life-changing returns.
So be sure you tune in on April 8 at 8 p.m. ET. Reserve your spot right here.
Regards,
Jeff Brown
Editor, The Bleeding Edge
Like what you’re reading? Send your thoughts to [email protected].